Why Aurora Cannabis Stock Is Still Going Down Today

It’s been a rough week for investors in marijuana stocks, and for investors in Aurora Cannabis (NYSE:ACB) in particular. Aurora stock hasn’t seen an up day since Monday, when the election results were mostly finalized…

Because Vice President-elect Kamala Harris had campaigned on a plan to decriminalize marijuana, and expunge the records of those with pot-related convictions, it was assumed Monday that the Democrats’ victory would be good news for marijuana stocks such as Aurora.

But following several reports of bad news for the company, Aurora Cannabis stock is trading down for the third day in a row today, falling 4.5% through 11:50 a.m. EST.

Aurora’s earnings news showed sales down 10% year over year, and an $81 million net loss. Then Aurora said that its free cash flow was still going negative, with $93 million in cash burned during the first fiscal quarter of 2021.

And then the company added insult to financial injury, announcing plans to sell 20 million new shares in an effort to raise $150 million to replace its lost cash.

Will the sell-off ever end? Investors can…

Continue reading at THE MOTLEY FOOL



You May Also Like

About the Author: admin

Leave a Reply

Your email address will not be published.